Plans to release revised stablecoin-yield language in the Clarity Act have been pushed back, prolonging uncertainty around one of the bill’s most contentious provisions.
According to Politico, Senator Thom Tillis said the updated draft is unlikely to be released this week as lawmakers wait for clarity on the timing of the Senate Banking Committee’s upcoming markup. The Block reports that legislative teams are still meeting with bank trade groups and crypto firms, signaling ongoing negotiations despite earlier expectations of an imminent rollout.
What’s in the draft
- It reportedly would bar rewards on idle stablecoin balances held in accounts, while still allowing yield that is explicitly tied to transactional activity.
- A source told The Block major rewrites at this stage would be difficult, suggesting the text is largely settled even as political agreement remains elusive.
Who’s negotiating
- Tillis and Maryland Executive Angela Alsobrooks have been leading efforts to resolve the dispute that’s held up progress on the Digital Asset Market Clarity Act well past its initial end-of-2025 target.
- Tillis had earlier indicated the language was close to done—“I think the language has come together well”—but that timeline has slipped, highlighting the difficulty of aligning competing interests.
Why it matters
- Stablecoin yield is the bill’s flashpoint. Last year’s GENIUS Act stopped issuers from paying interest directly to holders but left room for third-party platforms (like exchanges) to offer yield—a loophole the Clarity Act aims to close.
- U.S. banks warn that permitting such rewards could siphon deposits away from traditional institutions and undermine funding stability. Crypto firms, including Coinbase, counter that a ban would stifle product innovation and prevent banks from participating on equal footing.
Ongoing talks
- The White House has convened closed-door meetings since the start of the year to bridge the gap, but no agreement has been reached. Both sides remain entrenched as lawmakers decide how far to go in restricting yield-bearing stablecoin products.
What to watch next
- The timing of the Senate Banking Committee’s markup and whether an updated draft will be released once that schedule is clear. Continued meetings between legislative teams, banks, and crypto firms may still influence final language.
Read more AI-generated news on: undefined/news
